SEC Open Meeting to Discuss Electronic Delivery

The SEC will hold an open meeting on Tuesday, June 5, 2018 at 10:00 a.m. to consider electronic delivery of shareholder reports. Electronic delivery rules have been highly debated since at least 2016 when the SEC delayed consideration of the switch from paper to digital delivery. Major fund industry trade groups have continued to push for electronic delivery while groups supporting paper companies advocate for continued paper reports to shareholders. According to the sunshine notice, the Commissioners will discuss:

• whether to adopt a new rule as well as amendments to rules and forms to provide certain registered investment companies with an optional method to transmit shareholder reports.
• whether to issue a release requesting comment about processing fees for delivering shareholder reports and other materials to fund investors.
• whether to issue a release requesting comment from individual investors and other interested parties on how to enhance the delivery, design, and content of fund disclosures, including shareholder reports and prospectuses.
• whether to propose amendments to rules adopted under section 13 of the Bank Holding Company Act related to prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds (commonly known as the “Volcker rule”).